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TMI Blog1998 (2) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ction agency fee ? 2. Whether the Tribunal was right in holding that while arriving at the ceiling under section 40(c) the reimbursement of the medical expenses should be taken into account ?" The second question may first be disposed of as it is submitted by counsel that the law has been laid down by this court on a similar question considered in the case of Rane (Madras) Ltd. v. CIT [1995] 212 ITR 583 wherein it was held that the medical reimbursement pay was required to be taken into account while invoking the provisions of section 40(c) of the Income-tax Act. We, therefore, answer the second question in the affirmative, in favour of the Revenue and against the assessee. The first question relates to the extent to which the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... packing credit is concerned. The other two items in dispute relate to the expenditure incurred on inspection agency fee paid in India, and the expenditure on account of certificates of origin given in India. Both these items relate to the actual exportation of goods sold by the assessee in the export market and they are not in the nature of expenditure incurred for the purpose of developing the export market. Learned counsel for the assessee, however, submitted that the assessee is entitled to claim the expenditure so incurred under sub-clause (vi) of section 35B(1)(b) of the Act which refers to expenditure incurred wholly and exclusively on "furnishing to a person outside India samples or technical information for the promotion of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though incurred in India was eligible for weighted deduction. Having gone through the judgment, with great respect, we are unable to concur with the view that export inspection agency fee paid in India for the inspection of goods actually exported by way of sale, is eligible for consideration under section 35B of the Act. We are also unable to subscribe to the view that the expenditure incurred on account of the certificate of origin given in India is eligible for weighted deduction under section 35B of the Act. As pointed out earlier, section 35B of the Act is only concerned with the expenditure incurred by an assessee on development of the export market and not with the actual sale of the goods or with particular sales. This is evident f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture incurred outside India. We find that, in that decision, there is no mention of the fact that clause (b) of sub-clause (vi) relates only to technical information for the promotion of sale of such goods and not technical information with regard to the goods actually sold and exported. When a person enters into an export contract for the sale of goods, it is the normal practice for the buyer to require a certificate of origin as also a certificate by a reputed inspection agency and such documents are required to be submitted by the exporter for operating a letter of credit that may have been opened by the buyer or as part of the documentation to be sent to the buyer in terms of the contract. Such documentation would be part of the requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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